UPDATE: Credit Suisse Initiates QR Energy at Neutral on Distribution Growth Visibility
Credit Suisse initiated coverage on QR Energy (NYSE: QRE) with a Neutral rating and a $22 price target.
Credit Suisse commented, "In our view, QRE's private equity sponsorship is a differentiating factor which will enable QRE to outperform its upstream MLP peers over time. Near term, however, we believe a Neutral rating is warranted until the partnership provides clarity on the headwinds it faces in 2013 and distribution growth visibility improves. Our target price of $22 provides the potential for a 15% total return over the next 12 months."
QR Energy closed at $20.87 on Thursday.
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